Transco seeks FIT-All raise for 2021

Transco, LRA team up to solve transmission lines’ right-of-way issues

The National Transmission Corporation (TransCo) seeks to raise the feed-in tariff allowance (FIT-All) for 2021.

In its petition before the Energy Regulatory Commission (ERC), TransCo is asking for the approval of its proposed FIT-All rate for next year amounting to 18.81 centavos per kilowatt-hour (kWh).

While it is higher compared with the current FIT-All rate of 4.95 centavos/kWh, the proposed rate is less than the proposed 2020 rate of 22.78 centavos/kWh.

The proposed FIT-All rate is in consideration of the pending approval of the 2020 rate, according to TransCo compliance monitoring department manager Dinna Dizon.

According to Transco, the suggested FIT-All rate covers existing and projected eligible renewable energy (RE) capacities. This includes 525.95 megawatts (MW) for solar, 400 MW for wind plants operational after the implementation of the RE Act of 2008, 251.46 MW for biomass, 33 MW for pre-RE Law wind plants, and 204.15 MW for run-of-river hydropower plants under the RE Act, plus 75.88 MW for pre-RE Act plants.

Meanwhile, the 2021 FIT-All rate does not include the ERC suspension of FIT-All collections due to the COVID-19 pandemic.

The power regulator ordered the deferral of the FIT-All charge during the enhanced community quarantine back in April and May.

Despite a low FIT-All rate being charged to consumers, TransCo is still able to pay RE developers, but Dizon said that the government-owned company needs a higher rate to prevent future deficits.

The FIT-All is a uniform charge billed to all electricity consumers connected to power grids. This is reflected as a separate component in their monthly electric bills to cover payments to RE developers under the FIT system.

Collections are then remitted to the FIT-All Fund, which is established and administered by TransCo. Distribution utilities, the National Grid Corporation of the Philippines, and retail electricity suppliers serve as collecting agents. Proceeds then go to the FIT-All Fund, which is stored in a government financial institution

The FIT-All mechanism was established pursuant to the RE Act.

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